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Last Friday, I told you that timing markets isn't only possible, but it's very, very profitable, and I ticked off lots of household names who've proven it works by making billions of dollars timing markets successfully.
But there's a trick to it.
Today, I'm going to reveal what it is.
Because a lot of people think this bull market's going to end, maybe very soon, maybe spectacularly, and they either haven't gotten fully invested out of fear, or they're going to sell early, maybe very early, because they're afraid they won't see the end coming.
Even worse, investors who don't see the end coming could ride the market all the way down and lose, maybe everything.
Good timing allows you to load up in the right direction and gets you out of the way when things turn.
The kind of timing I'm talking about that's going to make you a lot of money, in bull markets and bear markets, isn't the kind of clockwork timing traders employ.
It's timing based on two things: investment horizons and trends. Let me tell you more…
The Difference Between Trading and Investing Is Time
Every single investment starts off as a trade. All that means is no matter how much research or analysis you do, or don't do, you start off the same way, you put on a position.
Time determines whether your position is a trade or an investment.
If I put on a trade thinking it's going to be an investment, if it goes my way and it keeps going up, then it's a good investment. The more time I'm in that position, the more it goes up, and the better investment it is.
If I put on a position, even if I think it's going to be an investment position, and it goes against me, I sell it and take my loss and reassess the investment, maybe getting into it again later. Or, I'll buy more stock lower, averaging down, because I'm highly confident it's going to turn around and go up.
If my would-be investment stock doesn't go up, at some level, usually for me between a 10% to 20% hit, I'll take my loss and move on. That position ends up being a trade, a losing trade, and not a big deal.
If my stock goes up and keeps going up, it's an investment, and I'll keep the position. I'll even add to it on the way up, as long as the company I'm invested in is doing what it's supposed to be doing.
On November 21st, we'll be unveiling a transformational breakthrough and a $2 million "surprise." You have to see this with your own eyes to believe it. But you must RSVP now.
And more importantly, I'll stay invested as long as the market is going up.
You must know what the company you're invested in is doing and how well it's doing it. Otherwise, even if the market's soaring, if you're hanging onto a loser, like a Blockbuster or a General Electric, you're going to be a loser.
Timing when to get out of a stock is about knowing the individual company, the stock you're holding.
I'll write about how to deal with individual stocks that aren't going your way another time.
Today, we're talking about timing the market.
Time the Market Right to Stop Losing Life-Changing Gains
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
He helped develop what has become known as the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of 10X Trader, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade.
Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps.
Shah is a frequent guest on CNBC, Forbes, and Marketwatch, and you can catch him every week on Fox Business's "Varney & Co."
He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.